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Parks Company Is Considering an Investment Proposal in Which a Working

Question 39

Multiple Choice

Parks Company is considering an investment proposal in which a working capital investment of $10,000 would be required.The investment would provide cash inflows of $2,000 per year for six years.The working capital would be released for use elsewhere when the project is completed.If the company's discount rate is 10%,the investment's net present value is:


A) ($1,290) .
B) $1,290.
C) $2,000.
D) $4,350.

Correct Answer:

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